Shocks regulatorios al mercado inmobiliario de Chile: ¿Cuánto del IVA a la vivienda se transfiere a precio de venta?

Regulatory shocks to housing market: How much of the Chilean VAT on housing sales is transferred to prices?

Francisco-Javier Lozano Navarro and Byron Idrovo Aguirre

MPRA Paper from University Library of Munich, Germany

Abstract: This study shows that the 2014 tax reform in Chile (Law No. 20.780) caused a significant increase in housing sales prices. We exploit the way tax regulation was applied in Chile to generate an analysis framework based on a natural experiment. By applying difference-in-difference estimation technique, we found that the implementation of VAT on housing sales since 2016 caused an additional increase in prices between 9,6% and 12,6%. In addition, we detect heterogeneity in the transfer of VAT to prices, according to house values and location. Finally, we found two events that caused a rise in housing prices: the announcement of the tax reform in 2014 and the implementation of the Law in 2016.

Keywords: real estate; housing; taxation; VAT; difference-in-differences (search for similar items in EconPapers)
JEL-codes: D4 H2 R3 (search for similar items in EconPapers)
Date: 2023-06
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:120017

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